Section 12 Of Arbitration Act As Amended By 2015 Amendment Applicable To Proceedings Initiated Before 2015 Amendment Act: Delhi Court

The Delhi Commercial Court ruled that Section 12 of the Arbitration Act, as amended by the 2015 Amendment Act, applies retrospectively to arbitral proceedings initiated before the amendment. The case involved a dispute over a tender for parking sites at Dwarka metro stations, where the petitioner challenged the arbitral award on the grounds of the arbitrator’s unilateral appointment by the respondent. The court held that the unilateral appointment violated Section 12(5) and Schedule VII of the amended Act, making the award liable to be set aside. The court relied on the Supreme Court’s judgment in Ellora Papers Mills Limited vs. State of Madhya Pradesh, which established that the amended Section 12 applies to pre-2015 arbitration proceedings. The decision underscores the retrospective application of the 2015 amendments to ensure impartiality and fairness in the appointment of arbitrators, even for disputes initiated before the amendments came into effect.